Canadian company to provide an update regarding oil and gas sector of Azerbaijan

Canadian international oil & gas production company Zenith Energy Ltd is pleased to provide an update regarding well C-37 operations. Report informs referring to the statement of the company.

The Company can confirm that, in order to optimise future production from well C-37, it will install a custom-built bridge plug to isolate the Upper Cretaceous formation and enhance the long-term productivity to be obtained from the Middle Eocene formation.

Zenith expects that, following the installation, and when the well is placed in full operation, stabilised oil production from well C-37 will be approximately 250-300 barrels of oil per day without stimulation.

As announced on October 9, 2019, the Company plans to perform a series of stimulation activities to progressively further increase productivity from the Middle Eocene formation.

The Company will provide further information on these developments in due course.

Notably, on March 16, SOCAR and Zenith Aran Oil Company Ltd. signed the Production Sharing Agreement (PSA) on restoration, exploration, development of the block which includes oil fields Muradkhanli-Jafarli-Zardab. The agreement was signed by SOCAR President Rovnag Abdullayev and Zenith Aran Oil Company Limited CEO Andrea Cattaneo with Zenith holding 80% and SOCAR-owned Joint Oil Company having 20% share. The agreement will be valid through 25 years. Muradkhanli-Jafarli-Zardab oilfields cover a total area of 642.4 square kilometers.